Part C: Pro Forma Statements and EFNConsider the following simplified financial statements for Turnbull Inc. assuming no income taxes.The company has predicted a sales increase of 15 percent. Assume that Turnbull Inc. pays out half of itsnet income in the form of a cash dividend. Cost and assets vary.with sales, but debt and equity do not.Balance SheetAssetsLiabilities$ 25,300 DebtEquity$ 25,300 Total$ 5,800$ 19,500$ 25,300AssetsTotalIncome Statement$ 32,00024,400$ 7,600SalesCostsNet IncomeSales Increase15%Payout rate50%1. Prepare the Pro Forma Statements for Turnbull Inc.2. Determine the EFN

1. Pro Forma Income Statement: Sales (15% increase from current level. Hence projected sales is…

Answered: Consider the following simplified…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Mikado Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .49 and a current ratio of 1.38. Current liabilities are $2,450, sales are $10,630, profit margin is 10 percent, and ROE is 15 percent. What is the amount of the firm’s net fixed assets?
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Two companies are in the retail sales business, but their performance results are different, which is evidenced by the following data: Financial performance ratio Return on capital employed (ROCE) Return on ordinary share financing (ROSF) 30% Average debt collection period Average debt payment period Gross profit margin Net profit margin Average stock turnover period 20% 63 days 50 days 40% 10% 52 days Comp A Company B 17% 18% 21 days 45 days 15% 10% 25 days Perform the analysis of these data and describe the differences between these two companies. It is known that in one of them the work with consumers is well organised, while the other one is offering competitive prices. Which of these advantages are attributable to each company?
The most recent financial statements for Camryn, Incorporated, are shown here (assuming no income taxes): Income Statement Sales Costs Balance Sheet $6,500 Assets $23,500 Debt $ 9,500 4,610 Equity 14,000 Net income $1,890 Total $ 23,500 Total $ 23,500 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $7,150. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) External financing needed
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 21,000 Assets $ 9,000 Debt $ 4,900 Costs 13,800 Equity 4,100 Net income $ 7,200 Total $ 9,000 Total $ 9,000 The company has predicted a sales increase of 10 percent. It has predicted that every item on the balance sheet will increase by 10 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Multiple Choice $16,820 $7,494 $7,498 $7,490 $7,510
Given the following income statements and Balance sheet, find the following financial ratios Income Statement Sales revenue 30,000,000 Less cost of goods 21,000,000 Gross profit 9,000,000 Less operating expenses 6,000,000 Operating profit (EBIT) 3,000,000 Less interest expenses 1,000,000 Net profit before taxes 2,000,000 Less taxes (40%) 800,000 Net profit after tax 1,200,000 Less preferred stock dividends 100,000 Earnings available for common 1,100,000 Stock holders Balance Sheet Assets Liabilities Cash…
Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $ 1,000 Balance Sheet: Assets Cash $ 200 Short-term investments $ 140 Accounts receivable $ 100 Inventories $ 100 Total current assets $ 540 Net fixed assets $ 600 Total assets $ 1,140 Sales are expected to grow by 14% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
The most recent financial statements for Bradley, Inc., are shown here (assuming no income taxes): Sales Costs Income Statement. Net income Assets: Total EFN $6,800 -4,080 $2,720 Balance Sheet. $20,400 Debt $20,400 Equity Total $10,600 9,800 $20,400 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $7,752. What is the external financing needed? (A negative value should be indicated by a minus si Do not round intermediate calculations. Round your answer to the nearest whole number.)
The most recent financial statements for Kerch, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales Costs $9,300 7,330 Assets $20,000 Debt Equity $ 8,000 12,000 Net income $ 1,970 Total $20,000 Total $20,000 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $10,788. What is the external financing needed? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) External financing needed
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Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $ 28,000 Assets $ 9,700 Debt $ 4,600 Costs 13,400 Equity 5,100 Net income $ 14,600 Total $ 9,700 Total $ 9,700 The company has predicted a sales increase of 9 percent. It has predicted that every item on the balance sheet will increase by 9 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Multiple Choice $15,455 $15,437 $24,241 $15,441 $15,432
40. JoelEmbi, Inc. has an ROA (return on assets) of 15.2 percent, total assets of $4,500,000 and a net profit margin of 7.6 percent. What are JoelEmbi, Inc.'s annual sales? Enter your answer a whole number (i.e., rounded to zero decimal places. 41. JimmyButle, LLC. has a debt-to-total assets ratio of 39.6%. What is the company's debt-to-equity ratio? Enter your answer as a ratio (that is, do not convert to a percent), rounded to 2 decimal places. 42. JohCol, Inc has a debt ratio of 27.0% and ROE = 20.2%. What is JohCol, Inc.'s ROA? Enter your answer as a percent rounded to 1 decimal place. Enter 43. PauGeo, Inc. has an ROA of 18.2% and a debt/equity ratio of 0.83. The firm's ROE is answer as a percent rounded to 1 decimal place. 44. Assume that TraeYoung, Inc. has: Debt ratio 60% ● Net profit margin = 15.2% ● Return on assets (ROA) = 52% Find Trae Young's Total Asset Turnover ratio. Enter answer as a ratio (that is, do not convert to a percent), rounded to 2 decimal places.

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